CHAMWE KAIRA
Alpha Namibia Industries Renewable Power Limited (ANIREP) has extended its cautionary announcement it first issued on 16 August 2021, advising shareholders that negotiations are still in progress, which if successfully concluded, may have a material effect on the price of the company’s shares.
“Accordingly, shareholders are advised to continue exercising caution when dealing in the company’s shares until a further announcement is made,” it said on the Namibian Stock Exchange.
The core annuity revenue for ANIREP is derived from the IPP sale of electricity and operations and maintenance services, both consistently generating cash in accordance with the nature of the long term contracts and power purchase agreements.
During the first half of 2023, the Independent Power Producers (IPP) sale of electricity through ANIREP Solar (Pty) Ltd consistently generated a steady income of N$17.2 million, aligning with the preceding period, attributable to power purchase agreements (PPAs).
The PPA with NamPower remains effective until 2040, while the PPA with CENORED was extended in December 2022 for an additional year, now spanning until 2042. This extension accommodates a 120% capacity increase (and volumes), expanding the current capacity from 5MW to 11MW, a development slated to commence in 2024.
The operations and maintenance for HopSol Africa generated revenue of N$4.8 million in the first half of last year, a decrease of 16.6% compared to the prior period, as some of the contracts lapsed during the period with new contracts expected to contribute positively in the new financial year. The long-term strategy of the group is to grow annuity income.
ANIREP generated revenue of N$35 million a decrease compared to same period in 2022 of N$50.1 million, gross profit of N$25.7 million a decrease compared to the same period last year of N$41.3 million.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) of N$8.4 million showed a 78% decrease compared to half year 2022 EBITDA of N$37.7 million.
Currently, the company owns a total generation capacity of approximately 13.34MWp. According to the National Integrated Resource Plan, over 70% of the country’s installed electricity capacity is projected to be derived from renewable sources by 2030. With abundant wind and solar resources, Namibia is positioned to be one of the most cost-effective regions for renewable energy production.
With a vision to secure a 30% market share in the renewable energy sector, ANIREP is dedicated to pursuing renewable energy installations for prospective buyers, exploring acquisition opportunities, fostering capacity development initiatives, and engaging in Engineering Procurement and Construction (EPC) and Operations & Maintenance (O&M) projects.
